Reuters: India re-examines stance on cryptocurrencies amid global changes

Odaily Planet Daily News: Indian Economic Affairs Minister Ajay Seth said in an interview that India is reviewing its stance on cryptocurrencies due to changes in other countries' attitudes towards crypto assets. The review follows US President Trump's announcement of a cryptocurrency-friendly policy, which may further delay the release of a discussion paper on cryptocurrencies originally scheduled for September 2024. Seth said: "More than one or two jurisdictions have changed their stance on cryptocurrencies in terms of use, acceptance and how to view the importance of crypto assets. In the process, we are reviewing this discussion paper again." He said that since such assets are "not limited by national borders", India's position cannot be unilateral, but did not specifically mention the United States. (Reuters) Yesterday, according to Indian Finance Minister Nirmala Sitharaman's announcement in the 2025 federal budget, cryptocurrencies will be included in Section 158B of the Income Tax Act for reporting undisclosed income. The amendment allows for collective assessment of unreported cryptocurrency gains, giving them the same tax treatment as traditional assets such as currency, jewelry and gold bars. Under the new amendment, cryptocurrencies will fall under the definition of virtual digital assets (VDA). In a sign of concern for cryptocurrency holders, Indian authorities may impose tax penalties of up to 70% on previously undisclosed cryptocurrency profits. According to the document, the penalty could apply to undisclosed crypto gains for up to 48 months after the relevant tax assessment year, the document reads: "70% of the total amount of tax and interest payable on the additional income disclosed in the updated income tax return [ITR]."